In short
An unmodified (clean) opinion states that the financial statements are presented fairly, in all material respects, in accordance with the applicable financial reporting framework.
Key takeaways
- In private-company reports, the Opinion section comes first, followed by the Basis for Opinion.
- Emphasis-of-matter and other-matter paragraphs can be added without changing the opinion.
- The report is dated no earlier than the date sufficient appropriate evidence was obtained.
Where it's tested
AUD: Audit Reports — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
An auditor is unable to observe the physical inventory count or satisfy themselves through alternative procedures, and inventory represents 60% of total assets. What opinion is appropriate?